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Desk vs. Private Office ROI Tool

Analyze and compare the financial performance of your open-plan desks versus private offices to make strategic decisions about space allocation and pricing.

/ 01

Optimize Layout

Determine the most profitable mix of desks and offices for your floor plan.

/ 02

Inform Pricing

Justify pricing tiers based on the financial return of each space type.

/ 03

Guide Expansion

Make data-driven decisions when planning a new location or expanding a current one.

The calculator

Run the numbers

ROI Comparison

Open-Plan Desks

Buildout cost (amortized) + furniture

Private Offices

Buildout cost (amortized) + furniture

Results

Enter values and click Calculate to see results

The theory

Understanding Desk vs. Office ROI.

The choice between dedicating space to open-plan desks versus private offices is a fundamental decision in coworking management. This tool helps quantify that decision based on financial return.

/ Formula

Key Formulas:

  • Profit: (Total Revenue) - (Total Cost)
  • Return on Investment (ROI): (Profit / Total Cost) × 100
  • Revenue per Square Foot: Total Revenue / Total Area

ROI shows how efficiently your investment (in buildout, furniture, etc.) is generating profit. Revenue per square foot is a crucial metric in real estate that shows how effectively you are monetizing your physical space. Comparing both gives a comprehensive view of which offering is more financially advantageous.

ROI = (Profit / Total Cost) × 100 / Revenue per sq. ft. = Total Revenue / Total Area
/ Industry standard

Revenue per Square Foot (or Square Meter) is a standard real estate KPI that tells you how much money each unit of your space is earning. Private offices might have a higher total revenue, but if they take up a massive amount of space, their revenue per square foot could be lower than that of a dense, open-plan desk area. It helps you understand space efficiency.

Questions, answered

Frequently asked questions.

This should represent the investment in the physical assets for that space type. A common way to calculate this is to take the total upfront cost (buildout, furniture, wiring) and amortize it over a period (e.g., 36 months). For example, a $36,000 office buildout would have a monthly amortized cost of $1,000. This provides a clearer picture of the return on that specific capital investment.
Revenue per Square Foot (or Square Meter) is a standard real estate KPI that tells you how much money each unit of your space is earning. Private offices might have a higher total revenue, but if they take up a massive amount of space, their revenue per square foot could be lower than that of a dense, open-plan desk area. It helps you understand space efficiency.
Not necessarily. A balanced coworking space often needs both to cater to different member needs (solopreneurs vs. small teams). A high ROI on offices might suggest that you should prioritize them in future expansions, or that your office pricing is strong. However, a vibrant open-plan area is often the 'heart' of the community, which has intangible value.
To improve ROI, you can either increase revenue or decrease costs. For the underperforming option, consider:
  • Adjusting Prices: Can you increase the price without losing members?
  • Value-Adds: Can you add a service or amenity that justifies a higher price? (e.g., dedicated phone booths for desk members).
  • Cost Reduction: Can you find more cost-effective furniture or buildout methods for future expansions?
No, this specific tool is designed to analyze the Return on Investment of the physical space and its setup costs. Other variable/operational costs are better analyzed with a full Profit & Loss statement or with tools like the 'Membership Tier Profitability Tool', which looks at per-member costs.
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